Jan 14, 2013 9:00am EST
buybacks and i don't think it's all priced in at this moment. >> let me ask you one five sof cal question, say i'm a client of the bank at gold man sachs, like many people i probably bought a lot of bonds because i was very concerned about my own money, wanting capital preservation. i look at the s&p. it's up 100% from the lows of 2008, 2009 and i say to myself, i know i'm too allocated right now in fixed income. should i really be buying stocks at these levels. what do you tell me? what do the high net worth advisers tell a client in a situation like that? >> one of the most important things we have done this year for our clients is to show them five-year numbers. and we're telling our clients that as they look exactly as you say, look at bonds, look at equities, they need to look over the horizon for the next five years. and over the next five years we expect basically zero returns on a nominal basis out of bonds, which actually means a negative real return but when we're looking at equities, in spite of the tremendous run-up from the trough of the crisis we are looking at 5% t
Jan 11, 2013 9:00am EST
for it? >> on the if is cal cliff? >> yes, on the -- >> the bill we just passed? >> yes, the band-aid bill. >> well, first off it was a made for tv drama, we shouldn't have been there in the first place, but you know, my big stumbling block was in that bill, there was a turning off of the sequester. the sequester are the automatic across the board cuts passed in august of 2011 in order to pass the last debt ceiling bill. and apparently people thought it was okay to turn that off going into this year, but unfortunately it's turned off for two months and we're right back about in the soup with another debt ceiling deal. how are we ever going to get out of this conundrum if we don't at some point start paying the money we promised to pay. >> you just said something. how are we going to get out of this conundrum. according to an op-ed by mr. stephen moore, the president doesn't believe there's a problem. do you believe that the material in that op-ed is correct? do you think in your opinion that the government believes the president specifically doesn't believe we have a spending problem?